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Coordination of STD and SSD Payments

By / February 18, 2018 / After You’re Social Security Disability Benefits are Approved / 39 Comments

Find out what happens when short-term disability (STD) payments overlap with Social Security Disability (SSD), and how long-term disability (LTD) factors in.

Dear Disability Advisor,

I looked up my status of social security disability claim and this is what it states: “Your claim for Disability benefits has been approved. A detailed notice has been sent to you with your benefit information. For more information please use the Benefit Verification Letter to check your benefit details.   If you disagree with the decision, you may request an appeal in 60 days of the date on the Notice of Decision you receive.” Does this mean my disability has been approved? I’ve been out of work since October 2016 and am receiving short term disability through my employer until April 1, 2017.  Will this effect my disability amount if I am in deed approved?  Thanks!!!

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Tammy

Dear Tammy,

The status you received indicates that you will be receiving either a fully favorable or partially favorable decision. Partially favorable would mean  that either the established disability date is later than you claimed or there’s been a determination that you have recovered and your claim has been closed, making only back benefits payable.

Usually  short-term disability (STD) policies have a provision that requires recalculation of STD benefits for any months that you have been paid STD and for which you will be paid Social Security disability (SSD aka SSDI). This means that you will be required to use your SSD back benefits to repay the STD overpayment if there were any overlapping months.

If the STD is higher than ongoing SSD, you will continue to receive reduced STD to supplement the Social Security until the STD maximum benefit period runs out. The same is true of long-term disability (LTD) insurance if you have LTD coverage when STD ends. You can request a copy of your STD policy to review all the provisions.

Sincerely,
The Disability Advisor

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Coordination of STD and SSD Payments
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